Journal Entry for February 2

Cash purchases Gh 3,000.

$$\begin{array}{l l r r} \text{Date} & \text{Account} & \text{Debit (Gh)} & \text{Credit (Gh)} \\ \hline \text{Feb 2} & \text{Purchases} & 3,000 & \\ & \quad \text{Cash} & & 3,000 \\ \end{array}$$

Paid Rama, a creditor, Gh 1,000 cash after deducting Gh 100 cash discount.
The total liability to Rama was Gh 1,000 (cash paid) + Gh 100 (discount received) = Gh 1,100.

$$\begin{array}{l l r r} \text{Date} & \text{Account} & \text{Debit (Gh)} & \text{Credit (Gh)} \\ \hline \text{Feb 4} & \text{Rama (Creditor)} & 1,100 & \\ & \quad \text{Cash} & & 1,000 \\ & \quad \text{Discount Received} & & 100 \\ \end{array}$$

Cash purchases Gh 1,500.

$$\begin{array}{l l r r} \text{Date} & \text{Account} & \text{Debit (Gh)} & \text{Credit (Gh)} \\ \hline \text{Feb 8} & \text{Purchases} & 1,500 & \\ & \quad \text{Cash} & & 1,500 \\ \end{array}$$

Paid creditors by cheque after deducting 10% cash discount.

• For Odanga: Original amount Gh 2,000. Discount = $10\% \times 2,000 = \text{Gh } 200$. Payment = $2,000 - 200 = \text{Gh } 1,800$.

$$\begin{array}{l l r r} \text{Date} & \text{Account} & \text{Debit (Gh)} & \text{Credit (Gh)} \\ \hline \text{Feb 10} & \text{Odanga (Creditor)} & 2,000 & \\ & \quad \text{Bank} & & 1,800 \\ & \quad \text{Discount Received} & & 200 \\ \end{array}$$

• For Gaisi: Original amount Gh 3,500. Discount = $10\% \times 3,500 = \text{Gh } 350$. Payment = $3,500 - 350 = \text{Gh } 3,150$.

$$\begin{array}{l l r r} \text{Date} & \text{Account} & \text{Debit (Gh)} & \text{Credit (Gh)} \\ \hline \text{Feb 10} & \text{Gaisi (Creditor)} & 3,500 & \\ & \quad \text{Bank} & & 3,150 \\ & \quad \text{Discount Received} & & 350 \\ \end{array}$$

Bought furniture worth Gh 10,000 by cash.

$$\begin{array}{l l r r} \text{Date} & \text{Account} & \text{Debit (Gh)} & \text{Credit (Gh)} \\ \hline \text{Feb 15} & \text{Furniture} & 10,000 & \\ & \quad \text{Cash} & & 10,000 \\ \end{array}$$

Paid Chona, a creditor, Gh 4,500 by cheque.

$$\begin{array}{l l r r} \text{Date} & \text{Account} & \text{Debit (Gh)} & \text{Credit (Gh)} \\ \hline \text{Feb 20} & \text{Chona (Creditor)} & 4,500 & \\ & \quad \text{Bank} & & 4,500 \\ \end{array}$$

Bought stationery worth Gh 3,000 by cash.

$$\begin{array}{l l r r} \text{Date} & \text{Account} & \text{Debit (Gh)} & \text{Credit (Gh)} \\ \hline \text{Feb 25} & \text{Stationery} & 3,000 & \\ & \quad \text{Cash} & & 3,000 \\ \end{array}$$

Cash purchases Gh 2,000.

$$\begin{array}{l l r r} \text{Date} & \text{Account} & \text{Debit (Gh)} & \text{Credit (Gh)} \\ \hline \text{Feb 27} & \text{Purchases} & 2,000 & \\ & \quad \text{Cash} & & 2,000 \\ \end{array}$$

Paid Muramba, a creditor, Gh 1,000 by cheque.

$$\begin{array}{l l r r} \text{Date} & \text{Account} & \text{Debit (Gh)} & \text{Credit (Gh)} \\ \hline \text{Feb 28} & \text{Muramba (Creditor)} & 1,000 & \\ & \quad \text{Bank} & & 1,000 \\ \end{array}$$